Oilgear Reports Second Quarter Results
MILWAUKEE--Aug. 1, 20043, 2004--The Oilgear Company today reported sales and earnings for the second quarter ended June 30, 2004.For the second quarter of 2004, Oilgear reported net sales of $23,271,000, a 12.9% increase from sales of $20,610,000 for the same period in 2003. The company reported net earnings of $3,000 or $.002 per share for the second quarter of 2004, compared to a net loss of $176,000 or $0.09 per share for the comparable prior period.
For the first half of 2004, net sales were $44,563,000, a 9.2% increase from sales of $40,823,000 for the first half of 2003. Net earnings were $13,000 or $.006 per share for the first six months of 2004, compared to a net loss of $1,145,000 or $0.59 per share for the same period in the prior year.
"The recovery in the fluid power industry, which contributed to our improvement in the first quarter, has continued into the second quarter. Our results reflect these improved economic conditions," said David A. Zuege, president and chief executive officer.
Shipments for the second quarter of 2004 were up 12.8% from the same quarter last year and up 9.3% over the first quarter of 2004. Shipments for the first half of 2004 were up 9.2% from the first half of 2003. Orders were $25.2 million in the second quarter of 2004, an increase of 20.3% over the same period in the previous year. For the first half of 2004, orders were $51.4 million, up 15.2% over the comparable period in the previous year. The backlog increased 24% from the beginning of 2004 to $35,800,000 at June 30, 2004.
"A bright spot in the orders for the first six months of 2004 was the orders received by our facility in Leeds, England, for hydraulic equipment used in weapons handling systems for submarines. Order levels have also been strong in construction equipment, aerospace, forging and aluminum extrusion," said Zuege.
"While our minimal profit in the second quarter is clearly not acceptable, it represents a significant improvement over the loss in the previous year. The strong level of orders, the relatively robust backlog and the current level of sales activity give us cause for some optimism about the remainder of 2004," said Zuege.
A leader in the fluid power industry, The Oilgear Company provides advanced technology in the design and production of unique fluid power components and electronic controls. The company serves customers in the primary metals, machine tool, automobile, petroleum, construction equipment, chemical, plastic, glass, lumber, rubber and food industries. Its products are sold as individual components or integrated into high performance applications.
The Oilgear Company
Consolidated Condensed Operating Statement
(Unaudited)
Three Months Ended
June 30,
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2004 2003
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Net sales $23,271,000 $20,610,000
Cost of sales 17,795,000 15,505,000
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Gross profit $5,476,000 $5,105,000
Selling, general and administrative expenses 5,000,000 4,891,000
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Operating income $476,000 $214,000
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Interest expense 327,000 335,000
Other non-operating income, net 37,000 55,000
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Earnings (loss) before income taxes 186,000 (66,000)
Income tax expense 149,000 90,000
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Net earnings (loss) before minority interest 37,000 (156,000)
Minority Interest 34,000 20,000
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Net earnings (loss) $3,000 $(176,000)
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Basic earnings (loss) per share of common
stock $0.00 $(0.09)
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Diluted earnings (loss) per share of common
stock $0.00 $(0.09)
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Basic weighted average outstanding shares 1,960,000 1,955,000
Diluted weighted average outstanding shares 1,979,000 1,955,000
The Oilgear Company
Consolidated Condensed Operating Statement
(Unaudited)
Six Months Ended
June 30,
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2004 2003
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Net sales $44,563,000 $40,823,000
Cost of sales 33,896,000 31,494,000
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Gross profit $10,667,000 $9,329,000
Selling, general and administrative expenses 9,671,000 9,788,000
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Operating income (loss) $996,000 $(459,000)
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Interest expense 657,000 662,000
Other non-operating income (loss), net (9,000) 223,000
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Earnings (loss) before income taxes 330,000 (898,000)
Income tax expense 262,000 212,000
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Net earnings (loss) before minority interest 68,000 (1,110,000)
Minority Interest 55,000 35,000
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Net earnings (loss) $13,000 $(1,145,000)
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Basic earnings (loss) per share of common
stock $0.01 $(0.59)
========================
Diluted earnings (loss) per share of common
stock $0.01 $(0.59)
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Basic weighted average outstanding shares 1,959,000 1,955,000
Diluted weighted average outstanding shares 1,980,000 1,955,000
The Oilgear Company
Consolidated Condensed Balance Sheet
(Unaudited)
June 30, December 31,
2004 2003
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ASSETS
Current Assets
Cash and cash equivalents $6,129,000 $6,236,000
Accounts receivable 15,740,000 15,476,000
Inventories 23,852,000 23,647,000
Other current assets 3,887,000 2,988,000
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Total current assets $49,608,000 $48,347,000
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Net property plant and equipment 18,701,000 19,896,000
Other assets 2,308,000 2,196,000
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$70,617,000 $70,439,000
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current debt $21,518,000 $4,250,000
Accounts payable 8,828,000 8,249,000
Other current liabilities 9,408,000 8,430,000
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Total current liabilities $39,754,000 $20,929,000
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Long-term debt 1,685,000 19,586,000
Unfunded employee benefit costs 23,858,000 24,045,000
Other non-current liabilities 808,000 916,000
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Total liabilities $66,105,000 $65,476,000
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Minority interest in consolidated subsidiary 992,000 938,000
Shareholders' equity 3,520,000 4,025,000
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$70,617,000 $70,439,000
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